The net profit was down 17 percent on the same quarter last
year, when earnings were boosted by a one-time gain of 31.4
billion rupees from past royalty dues from joint venture partner
Cairn India.

ONGC said on Monday gross discounts to state-run refiners
marginally fell to 124.33 billion rupees while the net amount it
received per barrel of crude rose to $47.97 from $44.71 a year
ago.

Last month, India partially raised prices of subsidised
diesel to cut the government's fiscal deficit and the oil
ministry has also recommended raising gas prices, but gains have
been limited so far as crude prices have also continued to rise.

ONGC has been on a buying spree in recent months to secure
interests in overseas oil and gas assets.

It agreed to pay $5 billion for ConocoPhillips' 8.4 percent
share of the Kashagan field in Kazakhstan in November, and
months earlier signed a $1 billion deal for a small stake in oil
fields in Azerbaijan.

The state explorer has also been investing to maintain
output from its old fields in India and has lined up capital
spending plans of around 340 billion rupees for the next fiscal
year starting April.

Shares in ONGC, valued at nearly $50.4 billion, closed 1.7
percent lower ahead of the results. The stock has jumped 15
percent so far in 2013, outperforming a 6 percent rise in the
sector index.
(Reporting by Devidutta Tripathy and Prashant Mehra; Editing by
Mark Potter)